Mid Term Business Plan (2021-2023) Progress Update2021 Summary ＆ 2022 Plan

February 15, 2022
Member of the Board

Global CEO and Representative Executive Officer

Shu Ishibashi

Mid Term Business Plan (2021-2023) “Aggressive approach” and “Challenge”
2021
COVID-19 Impact

Stage

Gradual recovery
Crisis management

2022
RecoveryFebruary

Sustainability at the core

Transformed“strong” Bridgestone

Rebuilding earning power
Strategic growth investment■ Tire businessCore business

Rebuilding earning power: Business portfolio and manufacturing footprint restructuring, Expense and cost structure reformation
Premium business strategy: Flexible agile management, Dan-Totsu product strategy - new premium ENLITEN

ソリューション事業■ Solutions businessAccelerate global expansion
Growth business〈2023 Target〉

Tire

Expansion of Tire-centric solutions / Retail service / Mobility solutions■ Start in areas where Bridgestone can leverage our core competencies: explore technology and business model
Exploratory business

Upstream of supply chain – Guayule business/ down stream of supply chain – Recycle business,
New challenge of Diversified products business – soft robotics business

Diversified products
business■ Sharply focus on areas where Bridgestone’s core competencies can be leveraged

Enablers
for execution
Core Competencies■ Reinforce foundation for financial strategy: Reinforce management structure and portfolio management■ B-HRX：Reinforce development of digital talent■ Bridgestone design “Circle Aesthetics”

2/34

Solutions2021 Summary＆2022 Plan：“Aggressive approach” and “Challenge” “Transform change to opportunity”
Past negative legacies - Tackle squarely without delay -Immediate issues - Focus on “execution“ and “delivering results”-

 Rebuilding earning power・ Execute manufacturing footprint and business portfolio restructuring:
Mid Term Business Plan (2021-2023):
Approx. 40% reduction of manufacturing sites (2019: approx. 160 sites)
2021: Restructuring of 30%(50 sites) manufacturing footprints

 Accelerate the transformation toward “strong” Bridgestone by 2023 /Improve the qualify of business thoroughly
・ Flexible agile management/ prompt response to the changes
in business environment＜Price management & improvement of sales MIX: 2021&2022＞
・ Reinforce strategic price management (including price increase)・ Improve sales MIX: Sales expansion of high value added products‐Increase the ratio of passenger car high rim diameter (HRD) tires sales＜Supply chain management based on global optimization: 2021&2022＞
・ Maximize utilization of existing assets /Support U.S. & Europe with the supply from Japanese and Asian plants
while keeping “local production for local sales” as our basic principle
・ Improve cost by global procurement projects

・ Become profitable across entire portfolio in Mid Term Business Plan
(2021-2023):- 2021: Achieved profitability in Russia/Africa business,
Diversified product business- 2022: Plan to be profitable in India & China Truck and Bus business・ Execute expense and cost structure reformation:- Reduction of fixed cost: Proceeded as planned

Execute rebuilding earning power ahead of plan Enhancement of enablers for execution
・ Reinforce foundation for financial strategy：ROIC as the critical management index- 2021: Evaluate “Earning power” by region/business thoroughly
Established Global controller function(Scrutinize 23 investments, total 230 B JPY in 2021)- 2022: Evaluate investment from sustainability point of view,
enhance investment management to secure global optimization*1 OE: Original Equipment, *2 REP: Replacement

3/34

2021 1st half : Capture the demand recovery in mainly U.S. & Europe,and execute sales with “aggressive approach”
3rd quarter~ : Minimize impact of OE*1 tire demand reduction resulting fromsemiconductor shortage through solid growth of REP*2 tire sales
Reinforce price/cost management responding to inflation in raw
material, ocean freight and energy and labor shortage & labor
cost up in North America.
2022：Respond promptly with price management for the continuous inflation

Continue moving forward in 2022 / Transform change to opportunity
with “Aggressive approach” and ”Challenge” spirit

2021 Summary＆2022 Plan：“Aggressive approach” and “Challenge” “Transform change to opportunity”
Lay foundation for the future growth 2022 initiatives

 Expansion of premium business strategy :New premium for EV era<ENLITEN business strategy>

・ Expand ENLITEN, the Innovative tire technology optimized to fit EV

2022-2030: Launch 90 products for Passenger & Light truck tires
2030: Approx. 100% of fitment of ENLITEN for passenger & light truck tires

・ Business growth vs Sustainability,
Customization of tire performance vs productivity improvement /cost optimization throughout value chain
Simultaneously create value that can sometimes be contradictory⇒ Gain competitive advantage

 Strategic growth investment＜Core business＞
Rebuild mid-long term manufacturing footprint・ 2022:- Start studying global manufacturing footprint from a mid-long term perspective
・ Execute investment to expand manufacturing capacities responding to sales
with “aggressive approach”

・ Replace production equipment from passenger Low Rim Diameter to High Rim
Diameter・ Invest for Japanese and Asian manufacturing capacities expansion while keeping“local production for local sales” as our basic principle

・ Structure Japanese manufacturing as a global core
Promote Sister plant system/ Fighting mother plant system
・ Study and execute the investment for sustainability

4/34＜Solutions business＞

・Expansion of retail & service : improve user experience (UX)

Based on the global solutions network, provide the service customized toeach customer and deliver peace of mind and safety.
・ 2021: Enhanced mobile van service (U.S. and Australia)
Expanded EV charging solutions network (U.S. & Europe)
Expanded subscription model (Europe, U.S. and Japan)⇒2022‐Continuously enhance and expand the service

・ Global expansion of mobility solutions:・ 2021: Acquired Azuga Holdings - digital fleet solutions provider in North America
Started digital data service by Webfleet solution in Europe
・2022: Agreed acquisition of Arevento by BRISA, Bridgestone’s affiliated company
Maximize the synergy between Webfleet Solutions in Europe and Azuga
in North America

・ Enhancement of mining solutions:・2021: Acquired Otraco - a solutions provider for OR tire management andservices・ 2022: Enhance solutions with strong real x digital

Build solid foundation of solutions business
Determine growth potential and profitability of each business⇒to establish as “growth engine”

2021 Summary＆2022 Plan：“Aggressive approach” and “Challenge” “Transform change to opportunity”
Lay foundation for the future growth 2022 initiatives
 Exploratory business:

Aim for commercialization with small scale in next mid-term businessplan period (2024-2026)
2022:‐Upstream of supply chain:
Guayule business - Explore toward commercialization‐Downstream of supply chain:
Recycle business – Explore technology with co-creation
Japan: Co-create with partner and conduct large-scale experimentby 2030, aiming for early commercialization‐Soft-robotics business:
Explore business model on a co-creation basis■ Driving DX (Digital Transformation) and building digital foundation

2021:
High-level digital talent: approx. 1200 people globally‐Reinforce cooperation with external partners and drive development
Adoption of global cloud partner

2022:
High-level digital talent: planning approx. 1400 people globally⇒Continuously develop and recruit digital talent and accelerate DX

5/34

 Realization of sustainability business framework- Carbon neutrality
2021: CO2 emissions (forecast) over -20% （vs 2011）- Bridgestone group company, BSEMIA, switched to 100% renewable energy in allof Europe locations (electricity)- 4 plants in Japan switched to 100% renewable energy (electricity)- Reinforced utilization of carbon pricing (Scope 1-2)

2022
- Expand renewable energy continuously (electricity)‐Drive efforts for carbon neutrality in manufacturing sites by capital investment etc.
- Reinforce CO2 emission reduction activities throughout value chain, including Scope3‐Linkage with ENLITEN business strategy

2023: CO2 emissions over -30% (vs 2011)
2030: CO2 emissions -50%(vs 2011)/Reduction more than 5 times of emission
2050: Carbon neutrality- Circular economy
・ Recycle business on a co-creation basis, linkage with ENLITEN business strategy
2020: Recycled & renewable material ratio 37%
2030: Recycled & renewable material ratio 40%

2021 Summary & 2022 Plan: Accelerate transformation to a “Strong” Bridgestone■ 2021: Achieved 2022 level ahead of plan through rebuilding earning power and execution of premium business strategy
2022: Continue to enhance strategic price management responding to increase of raw material price and minimize the impact on gross profit [%]Evolution of revenue and gross profit (Excluding M&A impact)
Revenue

40,000[B yen]

3,790

2,805

30,000Gross profit[%]
25,000

3,246

3,507

35,000

3,010

40.6%

39.5%

20,0003,100 level

40% level

42.0%

3,300 level

41.0%

40% level

39.3%

550 B JPY increase in revenue
on continuing business basis
2022: 112％ vs PY
39.0%
Forecasted 400 B JPY increase inrevenue on continuing business basis
38.0%

36.7%

Diversified business
10,000Tire business

37.0%

5,000

Solutions business

0

2015

2015

JPN account. standards

6/34

2019

2019

2020*

2021 2021*

2021

2022 2022

Result
Plan
Plan Projection
2020 International
2021
2
1
RT4
2022
22OB
見込
accounting standards (IFRS)Revenue:

40.0%2021: 120% vs PY

38.1%

37.8%

15,000

3,650

2023

Plan
2023

36.0%

Ratio of solutions business revenue:

Approx. 18％(2021&2022)⇒Aiming for over 20% in 2023

Plan: Mid Term business plan (2021-2023)*Excluding U.S. building products business,
Automotive anti-vibration rubber business andchemical products solutions business2021 Summary & 2022 Plan: Accelerate transformation to a “Strong” Bridgestone■ 2021: Achieved 2022 plan ahead of schedule2022: Will be close to 2023 plan level, ROIC that indicates ”Earning power” will be above 2021 level, and plan to improve continuously

Adj. Operating Profit / Net Profit / OPEX % / ROIC / ROE (Excluding M&A impact)
6,000

5,000

16.0%

14.7%
517
13.6%

Adj. Operating 4,000
Profit [B JPY]
Adj. Operating 3,000
Profit ratio [%]Profit fromcontinuing
operations[B JPY]
ROIC

343
9.8%
207
7.7%

284

2,000

7.4%
240

1,000

OPEX %

ROE
ROE

5.1%

260
8.6%

425
11.6%

360 level
11% level

9.0%

450 level
14.0%
13% level
12.0%

10%level
10.0%
290 level

9.2%
290

308

8.0%

8% level

6.3%
150

6.0%

220 level

4.0%

-20

0

(1,000)

394
12.1%

2015

2019

2020*

25.8%
13.3％

28.0%

30.3%

10.0%

-0.9%

JPN account. standards

2021
Plan

2021

Result

29.5% 28.4%
6.8% 12.9%

2022
Plan

2022

Projection

29% level 27.6%
9% level

11.3%

International accounting standards（IFRS）

2023
Plan

27% level

2.0%

Adjusted OP:
2021: 190% vs PY
Nearly 190 B JPY profit
increase on a continuingbusiness basis
2022: 108％ vs PY
Forecasted 30 B JPY
profit increase on acontinuing business basis

0.0%

12% level

Plan: Mid Term Business Plan (2021-2023)* Excluding U.S. building products business, Automotive anti-vibration rubber business and chemical products solutions business

7/34

New business portfolio “Five business” + Exploratory business

8/34

New glocal ・ portfolio management - Flexible agile management

Linkage with global management incentive system

Based on glocal management structure that Bridgestone has enhanced in two years
from Mid-Long Term Business Strategy Framework (disclosed in 2020),
we will reinforce portfolio business management, and build flexible agile management that can leverage each business strength
9/34

Rebuilding earning power & Premium business strategy

10/34

Rebuild earning power: Manufacturing footprint & business portfolio restructuring progress update■ Execute manufacturing footprint & business portfolio restructuring over a mid-long term

Mid Term Business Plan (2021-2023) - Global manufacturing footprint restructuring(incl. tire, diversified products & material manufacturing sites) : Approx. 40% reduction by 2023 from approx. 160 locations in 2019
Diversified Products Business

Withdrawal from conveyor belt business (without reduction of site)

Restructuring of production items (Iwata plant) (without reduction of site)
Automotive seat pad plant (Ageo plant)

Tire Business

Bethune plant, France

Tire Business

Bridgestone (Huizhou) Tire Co., Ltd.
（Truck and Bus tires）

Internal Manufacturing

Bridgestone(Huizhou) Synthetic
Rubber Co., Ltd(Synthetic rubber)

Bridgestone Cycle Co., Ltd. (Kisai Plant)

Transfer of Advanced Chemical Products in Japan (3 sites)

Transfer of Chemical products solutions business (16 sites)
Transfer of Anti-Vibration rubber business (6 sites)

Transfer of Bridgestone Sports Arena Corporation(without manufacturing site)

Diversified Products Business

Firestone Building Products Company LLC(U.S. Building products business)(15 sites – 13 in the U.S., 2 in other regions)

Diversified Products Business

Bridgestone Everlight (Shanghai) Co., Ltd(Polyurethane foam products)
Diversified Products Business

PT Bridgestone Astra Indonesia(Automotive anti-vibration rubber)Diversified Products Business

Bridgestone Automotive
Products de Mexico S.A. de C.V.
(Polyurethane for automobiles)

Bridgestone Tecnifibre Co., Ltd (Thailand)
Tire Business

Port Elizabeth plant, South Africa

11/34

2021: Restructuring of 50 locations in place and rebuild earning power
2022: Continue consideration from a mid-long term point of viewRebuild earning power: Expense and cost structure reformation-OPEX improvement through structure reformation-■ 2021: Improved both fixed cost and variable cost, exceeded plan
2022: Continue expense and cost structure reformation[B JPY]

2019

2020

2021

Reduction in 2019~2023 from structure reformation: total -37 B JPY (improvement of 20 B JPY more than planned)

Fixed
Cost

Operational productivity improvement
Restructuring of organization & review of wage system
Reexamination of sales promotion & brand strategy
Restructuring of manufacturing footprint, businessportfolio and integration of office facilities, etc.

Plan

Result-1.5 B JPY-1.5 B JPY-15-13 B JPY
-130
-8.5 B JPY- 85
120-12 B- JPY-35 B JPY

-13.7 B JPY-8.5 B JPY-13 B JPY

-37 B JPY

Reduction in 2019~2023 from structure reformation: total – 9.7 B JPY (improvement of 0.7 B JPY more than planned)

Variable
Cost

12/34

Plan

ResultConsolidate/rationalize warehouse-4 B JPY-1 B JPY-3.1 B JPY

Cost reduction through procurement system reform-4 B JPY-4.3 B JPY-9 B JPY-9.7 B JPY

Control unit price of logistics-2.3 B JPY

Premium business strategy: Flexible agile management
Promotion of flexible agile management throughout supply chain(EtoE) responding to changes in business environment
Continue thorough improvement of the quality of business
Marketing
商品戦略

R&D
製品開発

Procurement
調達

Production
生産計画
Plan

Manufacturing
製造 Promotion of flexible agile management- Supply chain management responding promptly to changes
in business environment and demand
2021:

・ Maximized utilization of existing assets
・ Captured demand recovery in U.S. & Europe with the supply from Japaneseand Asian plants while keeping “local production for local sales” as our basic
principle
・ Improved cost by global procurement projects
2021 1st half
- Executed sales with “aggressive approach” responding to demand recovery
mainly in U.S. & Europe
3rd quarter ~- Minimized impact of OE*1 tire demand reduction resulting
from semiconductor shortage through solid growth of REP*2 tire sales- Reinforced price/cost management responding to inflation in raw materials, etc.

Logistics
物流

Sales
販売

Customer
顧客使用Use

リデュース
3R
リユース
リサイクル

- Reinforce strategic price management to respond promptly tothe increase of raw material price, ocean freight and labor cost in
North America (including price increase)2021:

・ Executed multiple price increase in global major regions such as quarterly
price increase of PS REP*2 tire in North America
・ Offseted the inflation in raw material, ocean freight and labor cost withimprovement of price and sales mix

2022:

・ Execute price increase globally responding for the continuous inflation with agility
・ Plan the improvement of price and sales mix exceeding
the impact of increase in raw material price2022：Build more resilient supply chain management

・ Manufacturing improvement: Structure Japanese manufacturing as a global core
Sister plant system/ Fighting mother plant system

13/34*1 OE: Original Equipment, *2 REP: Replacement

Premium strategy: Sales expansion of HRD (High Rim Diameter) tires for passenger cars
Continue thorough improvement of the quality of business
Marketing
商品戦略

商品戦略

R&D
製品開発
製品開発

Production
生産計画
生産計画
Plan

Procurement
調達

調達

Manufacturing
製造

製造* OE：Tires on new vehicles ／REP: Tires for replacement**Plan: Mid-term business plan (2021-2023)***Sales share: Bridgestone estimation

Logistics
物流

Sales
販売
販売

物流

Customer
顧客使用Use

顧客使用

リデュース
リデュース
3R
リユース
リユース
リサイクル
リサイクル

 Expand HRD tire sales for passenger cars
U.S. & Europe :Sales ratio of HRD tires 18 and above （vs Plan**） Sales share*** of
HRD tires 18 and above
REP*

OE*

53%

55%

(INDEX : 2021 Q1=100 )61% 63%(+1%)(Asia pacific, China, South America)

114
33%
(+3%)

36%

2019 2020 2021 2022

53%

58%

(vs plan)

REP*

OE*

REP*

25% 28%2019 2020 2021 2022

Emerging markets： Sales ratio of HRD tires 17 and above

63% 65%
(+3%)

106
100

99

2021

Q2

27%
Q3

Q4

2019

2020

2021

2022

2019

Q1

The shift to higher inches is ahead in OE market, Take in the recursion demand from OE to REP
14/34

33% 36%
(0%)
30%

2020

2021

2022

Premium business strategy: Dan-Totsu product strategy■ ENLTITEN business strategy - Business growth & Sustainability, Customization of tire performance & productivity improvement /cost optimization throughout value chain
New premium business strategy for EV era to simultaneously create values that can sometimes be contradictory
The innovative tire technology optimized to fit EV,
achieving both environmental and driving performances andcontributing to expand driving distance of EV
Roll out since 2010

1st generation

Eco-friendly product⇒ 80% of all products (End of 2021)

ENLITEN- New premium for EV era-

Linkage with commonality & modularity,
・ Improve tire performance which is customized based on each user’s condition
・ Improve productivity and maximize economic value across entire value chain
・ Maximize social value & customer value for sustainability■ Expand from passenger car tires to light truck and truck and bus tires /ENLITEN - Evolve into “business” strategy with technology ・ products ・ business model
2021

2022

Expand from PS OE fitment in Europe

Co-creation with Mercedes-Benz

OE fitment on major manufacturers such as
MercedesBenz, BMW, VW, Nissan, etc
Co-creation with emerging OE manufactures basedon partnerships with sustainability as its core
(Lightyear: Lightyear One, Fisker: Ocean)

15/34

VISION EQXX (EV concept car)

: Contribute to realization of driving
distance over 1,000km by the fitment of
Turanza Eco with ENLITEN

2030
Launch truck and bus tire with
ENLITEN in Japanese market
Build “ENLITEN business strategy” which
maximizes society value and customer
value across the value chain (EtoE) to
expand the fitment on PS REP tires from2024

Number of ENLITEN product launch(2022~2030 in total)- PS : approx. 60 products- LT : approx. 30 products- TB : approx. 90 products

Fitment of ENLITEN (REP)- PS & LT : approx. 100%
- TB : over 70%* PS : Passenger car tires, LT : Light Truck tires, TB : Truck & Bus tires* OE：Tires on new vehicles, REP: Tires for replacement

Growth business: Global expansion of solutions business

16/34

Growth business: Accelerate global expansion of solutions■ Expansion progress of major solutions business
Bridgestone’s major solutions
Tirecentric
solutions

Retail & service

EuropeJapan

Australia

U.S.

※1

Retread solutions (tire + retread + maintenance)
Mining solutions (expand to mines in AUS & Chile with Japan as CoE*2)―

41 mines

Aviation solutions (expand to airlines globally with Japan as CoE)―

SUP/CPL※3―――

Subscription (Package with tire + maintenance + service )Mobile van service
Retail service (tire centric services + maintenance)
Retail financial services

Mobility
solutionsCredit Card

Fleet solutions
Digital data service※1 TPP：Total Package Plan, ※2 CoE：Center of Excellence, ※3SUP:Single Unit Price / CPL: Cost Per Landing

17/34

Growth business: Accelerate global expansion of solutions- Solutions business revenue■ Continue expansion of the resilient business modelGroup revenue

3,246
B JPY

C

Mobility
Solutions

B

Retail & Service/
Tire-centric Solutions

A
Tire(incl. N. America retail financial services revenue)

For passenger cars and commercial fleets

600

670

(2021 Plan:518 B JPY)

(2023 Plan: 650 B JPY)

411 B JPY (2021) ⇒ 436 B JPY (2022)• Subscription (mobox, etc)

B JPY

18.4%

33 B JPY (2021) ⇒ 40 B JPY (2022)

Tire-centric solutions• Truck & Bus retread sales (global)

95 B JPY (2021)⇒110 B JPY (2022)

2,402

2,720

74.0％

74.5％

B JPY

• New business form (not conventional tire sell-out)
Mining solutions, Hose solutions,
Aviation solutions, Truck tire mileage sales, etc

B JPY

Plan: Mid-term business plan (2021-2023)

18/34

23 B JPY (2021) ⇒ 32 B JPY (2022)• Services at equity stores

B JPY

2022

18.5%

• Webfleet Solutions• Azuga

B Retail & Service

3,650

2021
B JPY

C Mobility solutions

38 B JPY (2021)⇒52 B JPY (2022)
IFRS

600 B JPY (2021) ⇒ 670 B JPY (2022)

Growth business: Accelerate global expansion of solutions- Expansion of solutions business combining “real” x ”digital”
Truck and Bus
Tire-centric solutions+ Mobility solutions

Passenger cars
Retail & Service

Mining solutions

Retread

Dan-Totsu product

Subscription model
Subscription of all in one contract included new tire,
maintenance and retread
Propose proper new tire, retread according to each customer
conditions of use, provide maintenance according to eachcustomer’s situations of use

Mining vehicle and tire monitoring digital tool

Mobility solutions

Digital fleet solutions that supports efficient mobility operations
with securing customers’ peace of mind, safety, and maximizessocial value, customer value such as safety, environment,
economy and productivity

Based on Dan-Totsu product ”MasterCore” ,contribute to the optimization of mining operations,combining strong “real” such as “Dan-Totsu service”
and ”Dan-Totsu network” and “Digital” which collects andanalyze tire/vehicle data in real time

Dan-Totsu solutions network

Tire and maintenance subscription customized to eachcustomer needs

In order to provide tire/vehicle maintenance customized toeach customer, visit customers and provide services

DigitalData : End of 2021
Number of stores：Equity stores/franchies/voluntary chain/special contract dealer

Approx.
Passenger car network

18,400Commercial fleets
network

Retail network/ Solutions network

19/34

Approx.

6,400

Tire monitoring system

Tire database platform

Digital fleet solutions

Retread tire maintenance system

Growth business: Accelerate global expansion of solutions- Passenger cars Retail & Service■ Reinforce value proposition during the “use” of tires – UX
Provide tire & vehicle maintenance customized to each customer through Dan-Totsu solutions network■ Reinforce Retail & Service
Enhancement of EV charging
solutions network in U.S. & Europe

Europe・ Passenger cars network(FIRST STOP, Speedy, etc)
：Equity stores approx. 500 stores?sties?,
Franchise approx. 600 stores, etc
・ EV charging solutions network(collaboration with EVBox group)：Bridgestone retail network in Europe approx.
3500 ports
Charging ports provided by EVBox group
approx. 130,000 ports

Japan・ Passenger cars network (TIRE-KAN, etc)
: Equity stores approx. 400 stores,
franchise approx. 200 stores, etc

Thailand・ Passenger cars network(COCKPIT etc)
：Equity stores approx. 100 stores, etc

Australia

・ Passenger cars network (B-Select etc)
: Equity stores approx. 100 stores etc

・ Mobile van service: Lube Mobile approx. 200 vans

20/34

N. America:
Partnership with Blink Charging（EV Charging solutions provider）

Credit Card

■ Expansion ofsubscription model# of contracts

Expand from Europe
to U.S. and Japan

104,000

Japan
EuropeU.S.

U.S.

・ Passenger cars network(Firestone Complete Auto Care etc)
：Equity stores approx. 2200 stores etc
・ EV charging solutions network(collaboration with Blink Charging)：Plan to build approx. 50 ports in 2022
・ Mobile van service： Firestone Direct approx. 60 vans
Wrench approx. 150mechanics
・ Retail financial services

41,60019,600

2020

2021

2022

Growth business: Accelerate global expansion of solutions- Truck and Bus, Mobility solutions■ Execute strategic growth investment for global expansion of mobility solutions
Connect to approx. 1,000,000 vehicles mainly in U.S. & Europe in Bridgestone group

Create synergy

No.1 position
Connected vehicles at the end of 2021
: Approx. 800,000 vehicles
Plan of connected vehicles in 2022
: Approx. 850,000 vehicles
・Established legal entity as Bridgestone Mobility
Solutions, which integrated tire-centric solutions
and mobility solutions business in EU
・Invest in expansion of service for EV vehicles,
grade up of services and geographic expansion

Scale up in North America, the largest
market for mobility solutions, leveraging
the synergy with webfleet solutions

・Product/Service：Joint utilization of line-up
・Operation：Joint procurement, best practice sharing
・Technology：Resource efficiency throughjoint development
etc.

Connected vehicles at the end of 2021
: Approx. 250,000 vehicles
Plan of connected vehicles in 2022
: Approx. 300,000 vehicles

Arvento Mobile Systems A.Ş.
Agreed on acquisition by BRISA(Bridgestone’s affiliated company)

TurkeyConnected vehicles at the end of 2021
: Approx. 650,000 vehicles

MexicoChile
South Africa

21/34

Australia

Global expansion of Webfleet Solutions
Aim for leading position in each region(Connected vehicles outside of Europe/N. America at the end of 2021: over 70,000 vehicles)

Growth business: Accelerate global expansion of solutions- Mining solutions■ Further reinforcement of foundation for solutions through strategic growth investment
combining “Real”x”Digital” based on Dan-Totsu product “MasterCore”
 Expansion of long term contract which includes solutions※as of February 2022

MASTERCORE fitment target：83 mines“Real”
Genba-based
On-site service

Bridgestone＋Otraco**Completed acquisition in December 2021

“Digital”
Mining vehicle/Tiremonitoring tool

Otracom

Digital platform tomanage life cycle of tires“Dan-Totsu product”（Giant off-the-road mining tire）

22/34

Based on MasterCore, propose andrealize solutions which can leadproductivity improvement and cost
optimization at customers• Propose a way to use tires(load/speed/pressure etc) customized tothe operation of each mining vehicles• Visualize the current tire inventory inmining company and propose theeffective utilization of tires• Predict the tire demand according tocustomers’ operation plan
Propose the efficient tire inventory planand operation

4 categories for execution

23/34

MAIN・NEXT・STRATEGIC・DEVELOPINGTB: Truck & bus tires, PS: Passenger car tires

24/34

TB: Truck & bus tires, PS: Passenger car tires

25/34

Exploratory business: Toward commercialization

26/34

Exploratory business：Progress update

Guayule business“Plant to Produce Rubber” in arid zones
Explore toward commercialization
・ Aim to commercialize in mainly U.S. in 2026
through co-creation with partners

Recycle business
Tire to Rubber & Tire to Raw Material
Explore technology
From tire to oil and chemical products

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Soft-robotics business
Explore Business model・Leverage Bridgestone’s core competencies “Mastery of rubber” and ”Mastery of road contact”
・Continue to explore co-creation partners and aim for building business model・ Aim to build recycle business with ensuring high-quality
・ Japan: Co-create with partner and conduct large-scale experimentby 2030, aiming for early commercialization
・ U.S. and Europe: Towards business model building with leveraging eachregion’s characteristics and strength, promote ecosystem buildingEnablers for execution – Drive DX (Digital Transformation)

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Drive DX: Reinforce development of digital talent■ Reinforce cooperation with externals such as universities, incorporate new teammates through M&A,

and develop high-level digital talent such as AI/algorithm experts
High-level digital talent (intermediate level and above): 2021 approx. 1200 people, develop and recruit approx. 200 people in 2022 (End of 2022: Approx. 1400 people)

Digital Talent

Advanced

Intermediate

Full DS : Reinforce external collaboration

Full DS※1: AI / Algorithm Expert

Associate DS:Solution Field Engineer※1 DS

Recruit/develop AI/algorithm expert candidates through cooperation with universities, etc.
・Launch Digital talent development project:
Establishment of “Bridgestone x Tohoku University Co-creation Lab”
University: Participation of young engineers, Coaching backed by advanced specialized
technology & expertise
Bridgestone: Dispatch of engineers, Study theme-setting & offering of data

Develop Solution Field Engineers

・Develop engineers who can be close to customers at Genba and solve problems
through using digital data
・Acquire data science & AI knowledge through internal real-life examples & exercises,
become capable of solving problems

Associate / Assistant DS : Expand internal development opportunities

All engineering staff: Expand internal development opportunities for DS

Beginner

Assistant DS・ Acquire basic knowledge / method of data analytics(understand analytics / prediction model and the way to evaluate)⇒Compulsory for new engineering staff from 2019
It is becoming established as an internal development program

Company-wide: Talent development to support the Group’s DX

・ Acquire data literacy (understand and make use of data)⇒ Compulsory for new staff from 2021, expanding from Technical Center (Tokyo-Kodaira)

29/34: Data Scientist

Enablers for execution – Challenge for further driving DX
Further driving DX

Connect throughout the entire value
chain, global and operation

2020ー

Bridgestone’s DX：“Real”X”Digital”

Digitalization of each value chain

2010- Material
2016- Manufacturing (EXAMATION)
2016- Tire monitoring (Tirematics)
2019- Webfleet Solutions

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In order to realize DX throughout entire value chain, global and operation,

Accelerate Bridgestone’s DX

Strategic resource

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Strategic growth investment: “Aggressive approach” and “Challenge”■ 2021: Execute strategic growth investment for premium business strategy reinforcement andsolutions business enhancement
Solutions Business

WFS Enhancement of service in Europe and global(Digital solution provider, Europe)

Acquisition of Arvento Mobile Systems A.Ş.
(Digital fleet solution provider, Turkey)(Agreed on acquisition by BRISA, Bridgestone’s
affiliated company)

Solutions Business
Tire Business

Upgrading equipment at Shimonoseki plant（Tires for mining and construction vehicles)

Expansion of production capacity at Hikone, Tosu, Hofu
and Tochigi plants

Strategic investment in Kodiak Robotics(Autonomous long-haul trucking technology development, U.S.)

Acquisition of Azuga Holdings Inc.

(Fleet management solutions provider, U.S.)

Strategic investment in Wrench(Mobile vehicle maintenance service provider, U.S. )(Premium passenger car tires)
Tire Business

Inauguration of new state-of-the-art
Wet Handling Track at proving ground in Italy(Contribution to development of premium tires
and sustainability through water recycle)

Tire Business

Diversified Products Business

Expansion of production capacity
at Williamsburg plant （Air springs for EV）

Expansion of production capacity at Chonburi plant, Thailand(Truck and Bus tires)
Solutions Business

Acquisition of Otraco International Pty Ltd（Mining vehicle tire solutions provider, Australia/ Chile/ South Africa)

Acquisition of iTrack solutions businessfrom Transense Technologies (Mining solutions provider, UK)※Acquired in June, 2020

Tire Business

Expansion of production capacity
at Bahia plant, Brazil (Passenger cars premium tires)
Expansion of production capacity
at Santo Andre plant, Brazil (Truck and Bus tires)

2022: Consider Mid-long term manufacturing footprint/Continue to consider Asia, Japan and South America as global supply source
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Strategic resources
Strategic investment / Strategic expenses

M&A / CVC / Strategic partnership

Reinforcement of premium business strategy in tire business
Strategic growth investments for growth business expansion

Accelerate business through strong co-creation activities

2021
ResultApprox.

100 B JPY

 Tire business• Dan-Totsu product strategy• Manufacturing technology• Expansion of production capacity ofpremium product• Greening of manufacturing sites

 Tire-centric solutions business• Retread strategy• Tire-related services• Subscription

 Retail & Service business• Enhancement of mobile van andretail service

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2022
Plan
Approx.

150 B JPY Mobility solutions business• Fleet solution• Solution network• B-innovation(digital product design
infrastructure) IT Infrastructure• Core IT infrastructure systems
update• Remote work infrastructure
reinforcement• IT security reinforcement

2021
ResultApprox.

50 B JPY

2022
Plan
Approx.

150 B JPY

5 priority investment areas
Enhancement of mobility solutions
Enhancement of retail & service
Tire manufacturing technology
New emerging player in mobility industry
Sustainability

Communication plan

April 21, 2022 (Thu.)■ Bridgestone Innovation Park Opening Ceremony (Tokyo, Kodaira)- Technology innovation enabling Bridgestone 3.0 Journey,from interaction with empathy to co-creation

Progress Update planned at each quarter’s financial results announcement in 2022

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Statements made in this presentation with respect to Bridgestone's current plans, estimates, strategies and beliefs and other statements that are not historical facts areforward-looking statements about the future performance of Bridgestone. Forward-looking statements include, but are not limited to, those statements using words such as"believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "may" or "might" and words of similar meaning in connection with a
discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in othermaterials released to the public. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Bridgestone
cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, andtherefore you should not place undue reliance on them. You also should not rely on any obligation of Bridgestone to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. Bridgestone disclaims any such obligation.

Copyright © Bridgestone Corporation

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